Morever, the trade tensions remain a risk factor for Aud/USD. Current uncertainties surrounding Washington’s trade policy have kept investors carefully. If the US imposes further rates for Chinese import, the trade relationship of Australia with China can be confronted with challenges. Any escalation in trade conflicts can weaken the risk sentiment and the pressure AUD/USD. For now, the stimulus of China and the expectations of the Steady FED policy, however, lead Bullish Momentum in the couple.
Market optimism drives USD/JPY higher in the midst of American Russian conversations
USD/JPY recovered from the support zone and went higher to the $ 150 price zone as the Japanese yen weakened. A positive market for vote supported risk assets, which reduces the demand for the safe haven yen. Optimism about peace talks in the US and Russia has increased the confidence of investors, which contributed to the decline of the yen. In the meantime, the US dollar performed among the most important currencies, which is careful with the market for important economic events.
Various factors can influence USD/JPY this week. The monetary policy of the Bank of Japan (BOJ) and the interest rate decisions of the Federal Reserve are the most important events for this week. The American rate agenda remains a concern, because the fear of slower economic growth weighs on the sentiment of investors. In addition, the Flash Michigan Consumer Sentiment Index fell sharply to 57.9 in March from 64.7 in February, as shown in the graph below. This decrease in consumer feelings indicates weakening of consumer confidence. These mixed signals can lead to increased volatility in USD/JPY.